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  • Writer's pictureTamas Rigo

AI Impact, IMF Prediction: A Seismic Shift in the Global Workforce - The Dual-Edged Sword of AI

Updated: Feb 2

A Human Girl and a Cyborg facing each other
Face Off: How Will AI Impact Your Job In the Near Future? Augment, Replace?

The Latest IMF Study Confirms Our Understanding About the Medium-term Impact of AI

The latest IMF study reveals a startling forecast: AI will affect 40% of jobs worldwide within five years, marking a pivotal shift in the global economy. That is the fastest technological transformation humanity has ever had to cope with, and the outcome is uncertain and potentially 'polarised': The AI revolution and AI-powered automation can either supercharge productivity and income or exacerbate job displacement and inequality. This stark dichotomy of AI is a risk within your country, and it is a risk of increasing the wealth divide between the developed and less fortunate parts of our world.

AI Impact In Advanced Economies

In advanced economies, the impact of AI is particularly pronounced, with about 60% of jobs poised for transformation. Approximately half of these roles are expected to benefit from AI integration, enhancing productivity and efficiency. However, the other half faces a stark reality where AI could automate essential tasks, potentially leading to reduced labour demand, lower wages, and in cases, job obsolescence.

AI Impact In Emerging and Developing Markets

Contrastingly, emerging markets and developing countries present a different scenario. These regions are less vulnerable to immediate disruptions, with AI exposure projected at 40% and 26%, respectively. Nonetheless, a lack of robust digital infrastructure and skilled labour in such economies raises concerns about widening global inequality.

 The Impact of AI Adoption On Income Dynamics

AI's influence extends beyond job replacement to reshaping income dynamics within nations. Workers adept at leveraging AI will likely witness a surge in productivity and AI could disproportionately inflate labour income for those high-income groups whose jobs will be augmented, further deepening the wealth divide.

The Society and Regulators Must Shape the 'Market'

So, what can be done apart from bloging about topics like UBI (universal basic income)? As we navigate this AI-induced paradigm shift, the role of policymakers becomes crucial. For advanced economies, the focus should be on fostering AI innovation, establishing robust regulatory frameworks for a balanced and ethical AI integration and re-distributing the value created with AI's across the sociaty. Meanwhile, emerging markets must prioritize building digital capabilities and nurturing tech-fluent workforces.

The dawn of the AI era presents an unprecedented opportunity to sculpt an inclusive and prosperous future. 

For a better understanding of these dynamics and to explore practical strategies, look up the IMF report or delve into the original IMF blog post: AI Will Transform the Global Economy. Let's Make Sure It Benefits Humanity:

We think, this quote from Peter Diamandis summarises well how companies will be impacted and re-shaped in the coming years:

"There will be two kinds of companies at the end of this decade: those that are fully utilizing AI, and those that are out of business." 

(Named by Fortune magazine

as one of the “World’s 50 Greatest Leaders")

Thraive is here to help you in the transformation, supercharge your sales and marketing, and streamline your processes with AI automation.

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